Sports Emporium has two operating segments: sporting goods andsports apparel. The income statement for each operating segment ispresented below. Required: 1. Complete the \"%\" columns to be used ina vertical analysis of Sports Emporium\'s two operating segments.Express each amount as a percentage of sales. (Roundyour answers to 1 decimal place.)

SPORTS EMPORIUM
Income Statement
For the Year Ended December 31, 2018
	Sporting Goods	Sports Apparel
	Amount	%	Amount	%
Netsales	$1,850,000		$990,000
Cost ofgoods sold	1,060,000		450,000
Grossprofit	790,000		540,000
Operatingexpenses	470,000		360,000
Operatingincome	320,000		180,000
Otherincome (expense)	21,000		(16,000)
Incomebefore tax	341,000		164,000
Incometax expense	82,000		72,000
Net income	$259,000		$92,000

2. Use vertical analysis to comparethe profitability of the two operating segments. Which segment hasa higher net income as a percentage of net sales?

	o Sports Apparel
	o Sporting Goods